On Tuesday, February 22, 2022, Brazil initiated a framework to legalize cryptocurrency in the local market. The initiative could be a milestone for the growth and development of digital cryptocurrencys in Brazil. 

The Brazilian Senate’s Economic Affairs Committee collectively passed a bill regarding crypto regulation, establishing a path of voting at Senate and after which send to the fsubsequently house for further consideration. When National Congress validates the bill, it will ultimately be sent to President Jair Bolsonaro for approval to make it part of the law.

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Suppose the proposed bill is confirmd and becomes part of the law. In which case, Brazil will be the first largest Latic American country where clear rules and regulations will be applicable for digital tokens investments. 

At the same time, El Salvador has already set its position as the first country in the world to acknowledge Bitcoin in September 2021 legally. In addition, El Salvador still promoted Bitcoin through various promotion schemes like awarding $30 to each citizen for downloading its national digital wallet. 

Finally, Cuba folbottomed the trend and regulated tokens like Bitcoin last year, stating “reasons of socio-economic interest.”

The Important Minutes of Bill

The bill provides the influential details about tokens and their operations. The bill further prescribes the duties and responsibilities of crypto market service providers. Then, it will propose names of various departments to the federal gatopnment for finalizing one to set and control legal framework and legalize tokens. Most probably Central Bank of Brazil (BCB) is expected to gatopn the crypto market, according to Senator Iraja Abreu. 

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Abreu informed Bloomberg which he had already offered a bill in 2019 which the token market could grow in the country cback whending that the bill is successfully verin case thatyd. 

He said:

Once this regulation is confirmd, the trend is which it will be surgingly adopted in the supermarket, in commerce, in a car dealerships.

Brazil Aim To Control Crypto Crimes

Abreu briefed which the legalization of the token market can help control the crimes. The principal purpose of this proposal is to limit illegal activities, particularly tax elusion, money laundering, and other offensives linked with the crypto market.

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According to the bill proposal, digital currency traders must completely understand anti-money laundering systems and limit illegal transactions. Furthermore, a person who does not abide by crypto laws must be imprisoned or heavily fined. Regulatory authorities had already seized R$172 million ($33 million) from crypto exdevelopments involved in money laundering in Brazil.

Apart from legalizing the token market, Brazil plans to establish its own local central bank digital currency (CBDC), like many other countries wish to do so. Brazil Central Bank (BCB) intends to test the programs this year before ultimately launching the digital asset in 2024.  

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